Can China’s Carbon Emissions Trading System Achieve the Synergistic Effect of Carbon Reduction and Pollution Control?

Chen, Li; Wang, Di; Shi, Ruyi

doi:10.3390/ijerph19158932

Cited by 31 publications

(10 citation statements)

References 49 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Meanwhile, there has been limited research on how environmental legislation affects green governance [19,20]. Some literature mainly discussed the role of regulation on regional pollution emissions and corporate innovation and confirmed the success of China's ETS in facilitating development of green technology [21][22][23], promoting carbon efficiency [24], inhibiting carbon emissions [25][26][27] and the synergistic effect on pollution reduction and economic development [28,29]. These studies have provided macro and micro evidence for the efficacy of an ETS in China.…”

Section: Introductionmentioning

confidence: 99%

The Impact of China’s ETS on Corporate Green Governance Based on the Perspective of Corporate ESG Performance

Yao

Fei

Wang

et al. 2023

IJERPH

View full text Add to dashboard Cite

To achieve China’s “dual carbon” and common prosperity goals, corporate green governance is crucial. A key tool for promoting green growth is environmental legislation, particularly market-based regulation. With China’s carbon emission trading as a natural experiment, we adopt the DID method to quantitatively compare the gap between ESG performance of pilot and non-pilot carbon trading enterprises before and after policy implementation, thereby examining the impact, mechanism and optimization conditions of market-based environmental policy on corporate green governance based on panel data of China’s A-share listed companies from 2007 to 2019. In addition, PSM-DID and other methods are employed for preventing estimation bias caused by sample self-selection bias. It is found that: (1) the green governance level of pilot firms can be considerably improved by a carbon emission trading scheme (ETS); (2) the ETS primarily encourages enterprises to uphold their ESG obligations through increasing regulatory pressure from the government and corporate involvement in clean innovation; (3) enhancing regional marketization can strengthen the impact of carbon trading policy, and enterprises that are large and non-state-owned exhibit better performance with regard to green governance as a result of carbon trading policy. This paper provides practical experience for promoting corporate green governance to achieve the “dual carbon” goal based on a market mechanism from a micro perspective.

show abstract

Section: Introductionmentioning

confidence: 99%

The Impact of China’s ETS on Corporate Green Governance Based on the Perspective of Corporate ESG Performance

Yao

Fei

Wang

et al. 2023

IJERPH

View full text Add to dashboard Cite

show abstract

“…The impact of market-incentive ERP on the economic structure is also a crucial area of research. From a macro perspective, a substantial body of research has affirmed the positive impact of market-incentive ERP on environmental improvement [25,26]. For instance, the implementation of market-incentive ERP in some countries has not only reduced environmental pollution but also fostered the development of clean technologies and renewable energy industries [27,28].…”

Section: Literature Review Of Erp's Economic Outcomesmentioning

confidence: 99%

The impact of market-incentive environmental regulation policies on corporate environmental costs: Evidence from China’s carbon trading policy

Qin,

Tu,

Han

et al. 2024

PLoS ONE

View full text Add to dashboard Cite

As the world’s largest emitter of carbon, China has implemented a series of environmental regulatory policies to reduce emissions. However, most of these environmental regulations have been at the expense of increased corporate environmental costs. Therefore, research on how to efficiently control these costs is of significant practical importance. This paper uses the China’s carbon trading policy (CTP) implemented in 2013 as a quasi-natural experiment, utilizing data from Chinese listed manufacturing firms between 2008 and 2020. Employing a difference-in-differences (DID) model, the study investigates the impact of market-incentive environmental regulatory policies (ERP) on environmental costs. The findings reveal that CTP significantly reduced the environmental costs of firms, confirming the positive and vital role market-incentive ERP can play in environmental protection and cost control. These conclusions remain robust after a series of stability tests. Mechanism analysis suggests that the cost reductions brought by market-incentive ERP are primarily achieved through increasing green innovation. Heterogeneity analysis shows that non-state-owned enterprises (non-SOEs), key polluting firms, firms with lower financial constraints, and firms with lower total production efficiency benefit more from market-incentive environmental regulatory policies. This study provides new empirical evidence for government policy-making aimed at achieving long-term sustainable development.

show abstract

“…Tu et al measure the impact of a carbon emissions tax on the economic system using a four-sector dynamic stochastic general equilibrium model [ 43 ]. Chen et al discuss the effect of a carbon emission trading system (ETS) using the Differences-in-Differences method (DID) and find that ETS has regional heterogeneity [ 44 ]. Meanwhile, Shen, Lin and Cheng explore the impact of a mixed incentive policy of carbon tax and carbon trading on a firm’s low carbon transition [ 45 ].…”

Section: Literature Reviewmentioning

confidence: 99%

Dual Carbon Goal-Based Quadrilateral Evolutionary Game: Study on the New Energy Vehicle Industry in China

Liu

et al. 2023

IJERPH

View full text Add to dashboard Cite

In an effort to tackle climate change, the “Dual Carbon” target raised by the Chinese government aims to reach peak carbon dioxide emissions by 2030 and to achieve carbon neutrality by 2060. Accordingly, policy incentives have accelerated the new energy vehicle (NEV) sector. Whilst previous studies have focused on the bilateral game between governments and manufacturers, NEV development has witnessed interaction among multiple players. In this paper, we construct a quadrilateral evolutionary game model, considering the impact of government policies, manufacturers’ R&D investments, dealers’ support, and consumer choice on the evolutionary stabilization strategy (ESS) in the context of China. The results show that: (1) in the absence of government incentives, there is no motivation for manufacturers, dealers and consumers to consider the development of NEVs; (2) government incentives affect manufacturers and consumers on the evolutionary paths in the short term. In the long term, benefit- and utility-based limited rationality has a dominant role in the ESS. This study contributes to the understanding of the multilateral dynamics of NEV innovation and provides important implications to practitioners and policy makers.

show abstract

Can China’s Carbon Emissions Trading System Achieve the Synergistic Effect of Carbon Reduction and Pollution Control?

Cited by 31 publications

References 49 publications

The Impact of China’s ETS on Corporate Green Governance Based on the Perspective of Corporate ESG Performance

The Impact of China’s ETS on Corporate Green Governance Based on the Perspective of Corporate ESG Performance

The impact of market-incentive environmental regulation policies on corporate environmental costs: Evidence from China’s carbon trading policy

Dual Carbon Goal-Based Quadrilateral Evolutionary Game: Study on the New Energy Vehicle Industry in China

Contact Info

Product

Resources

About